Search found 9595 matches

by Kevin M
Fri Mar 16, 2012 3:40 am
Forum: Investing - Theory, News & General
Topic: Risk Figure of Merit
Replies: 22
Views: 1612

Re: Risk Figure of Merit

Here's something I consider. To beat your benchmark you must take more risk. If you take more risk, you are also likely to underperform relative to your benchmark. This is not exactly the same as thinking about standard deviation vs. semi-standard deviation, but it's a related concept. When evaluati...
by Kevin M
Fri Mar 16, 2012 3:31 am
Forum: Personal Finance (Not Investing)
Topic: Does your tax accountant charge $1650?
Replies: 42
Views: 5235

Re: Does your tax accountant charge $1650?

This is not exactly on topic, but I find it amusing that people think paying $300-1700 to do your taxes is fine but balk at paying, say, $8 for Netflix. I balk at both, but much more at the former than the latter. I don't have Netflix, but I pay about $110/month for Dish TV, and although it does bu...
by Kevin M
Fri Mar 16, 2012 3:17 am
Forum: Investing - Help with Personal Investments
Topic: Switch to Vangaurd ETFs?
Replies: 19
Views: 1455

Re: Switch to Vangaurd ETFs?

I own both. Mutual funds are simpler. Boglenaut mentioned a number of reasons this is so. Another thing you may not have considered: When you buy or sell an ETF, you get an intraday price. Aside from the fact that this price may be above or below NAV (premium or discount), it may end up being well a...
by Kevin M
Fri Mar 16, 2012 3:08 am
Forum: Investing - Help with Personal Investments
Topic: Can anyone help with Vanguard Symbols?
Replies: 11
Views: 968

Re: Can anyone help with Vanguard Symbols?

For VG funds, I could give you the link, but it's not hard to find it yourself. Go to Vanguard site (the personal site). Do you see a menu choice near the top of the page that might have what you're looking for? If you can't find it, I'll give you another hint.

Kevin
by Kevin M
Fri Mar 16, 2012 3:05 am
Forum: Investing - Theory, News & General
Topic: Now in Wiki: Extended Market Index Fund
Replies: 42
Views: 6947

Re: Now in Wiki: Extended Market Index Fund

Kevin M, that's what I was getting at when I said Here's another point. Extended Market Index Fund contain smaller cap stocks than Small Cap Index Fund!!! Extended Market Index Fund contains those micro caps , but Small Cap Index Fund doesn't. OK, you win this one, but the smallest 1.5%--c'mon. Do ...
by Kevin M
Fri Mar 16, 2012 2:44 am
Forum: Investing - Help with Personal Investments
Topic: Hold or Sell Rental property?
Replies: 24
Views: 2424

Re: Hold or Sell Rental property?

Any way you can refinance to a lower rate? I know it's hard with rental condos or townhouses; my girlfriend tried (her rate is close to yours), and could not find anyone who would do it, even though she has tons of equity. Have you researched it? I am biased. I have owned rental real estate for many...
by Kevin M
Fri Mar 16, 2012 2:20 am
Forum: Personal Finance (Not Investing)
Topic: Does your tax accountant charge $1650?
Replies: 42
Views: 5235

Re: Does your tax accountant charge $1650?

Hmmm... looks like the BUSINESS does the 1041 (and I guess generates the data for the K-1 ?), but then you also need to buy the HOME & BUSINESS to do the 1040 and enter the computed information for the K-1. Don't seem to have a single product that does both 1040 and 1041. Correct that you need two ...
by Kevin M
Fri Mar 16, 2012 2:16 am
Forum: Personal Finance (Not Investing)
Topic: Does your tax accountant charge $1650?
Replies: 42
Views: 5235

Re: Does your tax accountant charge $1650?

TurboTax Business says it does "Schedules K-1 (Form 1041)Estates and Trusts" but I have to presume that it includes the 1041 and not just the K-1 Shedule that is attached to it. Did you not see what I said above? I also did my own 1041s for a couple of years for two different estates I settled. You...
by Kevin M
Fri Mar 16, 2012 1:56 am
Forum: Investing - Help with Personal Investments
Topic: bonds
Replies: 55
Views: 4883

Re: bonds

Just ran into this on the INOVA web site on this page:
No early withdrawal penalty applies if 59 ½ years of age or older and with qualified distribution.
Have asked my "local" rep in an email to confirm this means what it appears to mean.

Kevin
by Kevin M
Thu Mar 15, 2012 7:16 pm
Forum: Investing - Theory, News & General
Topic: Why I Prefer ETF's to Mutual Funds (in a Brokerage Account)
Replies: 76
Views: 5086

Re: Why I Prefer ETF's to Mutual Funds (in a Brokerage Accou

Vanguard Tax-Managed International Fund Admiral Shares (VTMGX) , or its cousin Vanguard MSCI EAFE ETF (VEA) . I would use Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) instead of either one. Looking at the distributions, it looks like they are comparable. VTIAX includes emerg...
by Kevin M
Thu Mar 15, 2012 5:20 pm
Forum: Investing - Theory, News & General
Topic: Now in Wiki: Extended Market Index Fund
Replies: 42
Views: 6947

Re: Now in Wiki: Extended Market Index Fund

Total Market Index (MSCI) consisting of MCSI large, MSCI mid, MSCI small versus S&P 500 plus Extended market (S&P Completion). Here is a link to a graphical display of the relevant MSCI indices: http://www.msci.com/products/indices/country_and_regional/domestic_equity_indices/us/ I may have been mi...
by Kevin M
Thu Mar 15, 2012 4:46 pm
Forum: Investing - Help with Personal Investments
Topic: bonds
Replies: 55
Views: 4883

Re: bonds

Also, do you know if anybody over 59 1/2 can take an IRA- CD distribution and move it to an IRA in another institution without incurring a taxable event or early withdrawal penalty (as has been suggested to be the case at Penfed in prior posts)? Is this possible by federal law with ANY IRA- CD at A...
by Kevin M
Thu Mar 15, 2012 4:28 pm
Forum: Investing - Theory, News & General
Topic: Now in Wiki: Extended Market Index Fund
Replies: 42
Views: 6947

Re: Now in Wiki: Extended Market Index Fund

Nisiprius and LadyGeek: Wonderful that you invest so much to make it better! I was happy with the original version. I am happy with the current version. If I were writing it, I would not say it's surprising that small-cap and ext. market have similar performance. If you look at the median market cap...
by Kevin M
Thu Mar 15, 2012 4:07 pm
Forum: Investing - Theory, News & General
Topic: Now in Wiki: Extended Market Index Fund
Replies: 42
Views: 6947

Re: Now in Wiki: Extended Market Index Fund

DetroitRed: Sure, you could do that, but you can do the same thing with many other combinations of Large-cap and Small-cap funds-- e.g., the Vanguard funds of those names--for purposes of TLH with Total Stock. Kevin If the goal is to replicate Total Stock Market, then S&P 500 + Extended Market is t...
by Kevin M
Thu Mar 15, 2012 3:56 pm
Forum: Investing - Help with Personal Investments
Topic: bonds
Replies: 55
Views: 4883

Re: bonds

Hi, Kevin. Thanks for the great information. You are welcome! I just checked the INOVA web page. It was not easy figuring out who was eligible to join (the interface was slow and I have a very bad internet connection here in Venezuela), but it seems restricted to employees of certain companies ( I ...
by Kevin M
Thu Mar 15, 2012 3:19 pm
Forum: Investing - Theory, News & General
Topic: Now in Wiki: Extended Market Index Fund
Replies: 42
Views: 6947

Re: Now in Wiki: Extended Market Index Fund

DetroitRed: Sure, you could do that, but you can do the same thing with many other combinations of Large-cap and Small-cap funds-- e.g., the Vanguard funds of those names--for purposes of TLH with Total Stock.

Kevin
by Kevin M
Thu Mar 15, 2012 2:40 pm
Forum: Investing - Theory, News & General
Topic: Now in Wiki: Extended Market Index Fund
Replies: 42
Views: 6947

Re: Now in Wiki: Extended Market Index Fund

Nisi, I was wondering if you'd chime in with the growth charts. I was too lazy to check. The interesting thing is that it's not just the growth charts that highlight the differences, but the further-back time periods. One thing to keep in mind is that the indexes that the funds follow have (or may h...
by Kevin M
Thu Mar 15, 2012 6:21 am
Forum: Investing - Help with Personal Investments
Topic: Is Vanguard Target Retirement Fund suboptimal?
Replies: 7
Views: 1138

Re: Is Vanguard Target Retirement Fund suboptimal?

MVO tools are extremely sensitive to small changes in inputs, and are backward looking. They are mostly useful to see how changes in a portfolio might affect performance, but I would not consider them useful for constructing a portfolio. Output from an MVO analysis using data for a certain past time...
by Kevin M
Thu Mar 15, 2012 6:09 am
Forum: Investing - Help with Personal Investments
Topic: REIT & Wells Fargo Mutual Funds: 2 questions.
Replies: 6
Views: 620

Re: REIT & Wells Fargo Mutual Funds: 2 questions.

For the best replies, especially to question 2, please edit your post to follow suggested format in Asking Portfolio Questions (see link below). This may require some reading in the wiki as suggested by others.

Kevin
by Kevin M
Thu Mar 15, 2012 6:05 am
Forum: Investing - Help with Personal Investments
Topic: Follow-up Help with Vanguard Financial Plan
Replies: 13
Views: 1362

Re: Follow-up Help with Vanguard Financial Plan

1) He suggested we shift our TIPS (VIPSX) into our Total Bond Market fund (VBTLX) because the net real return is low (currently true, I suppose, given low inflation) and that the “market expectation of inflation is already built in to VBTLX.” What do you think? Should I dump VIPSX into VBTLX? I wou...
by Kevin M
Thu Mar 15, 2012 5:46 am
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation and Location Advice
Replies: 4
Views: 503

Re: Asset Allocation and Location Advice

Could you say more about how you are in the 28% federal tax bracket if you are retired? This implies a taxable income (after deductions and exemptions) of about $86K or more. My net worth is fairly high (I'm early retired), and I'm barely in the 10% bracket unless I do large roth conversions (did in...
by Kevin M
Thu Mar 15, 2012 4:58 am
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation at age 74
Replies: 28
Views: 2869

Re: Asset Allocation at age 74

Without knowing anything else about your situation, my guess is that putting everything in Target Retirement Income probably is fine. You could improve tax efficiency by holding the underlying funds in the appropriate account; i.e., Total Bond and TIPS in the tax advantaged accounts (e.g., IRA, SEP)...
by Kevin M
Thu Mar 15, 2012 4:48 am
Forum: Investing - Help with Personal Investments
Topic: Where can I hold Vanguard funds with specific share ident?
Replies: 1
Views: 212

Re: Where can I hold Vanguard funds with specific share iden

Vanguard now supports specific ID tracking for covered shares of mutual funds; i.e., shares bought starting in 2012. You can specify specific lots for covered shares with the new online interface. For noncovered shares of mutual funds (bought before 2012), you still have to use the funky process of ...
by Kevin M
Thu Mar 15, 2012 4:38 am
Forum: Personal Finance (Not Investing)
Topic: Does your tax accountant charge $1650?
Replies: 42
Views: 5235

Re: Does your tax accountant charge $1650?

But how does Turbotax know which forms you are going to need? TurboTax has all the forms you will need. It asks you questions, and fills in the forms for you. If you use the desktop version, you can flip back and forth between guided method and forms mode, so you can see how it's filling in the for...
by Kevin M
Thu Mar 15, 2012 4:11 am
Forum: Investing - Help with Personal Investments
Topic: bonds
Replies: 55
Views: 4883

Re: bonds

I just heard of a 6 yr CD at 2.6% with 6 month early withdrawal penalty at INOVA.....I need to check that one out myself. I am in the process of transferring cash from IRAs at Vanguard and Fidelity to INOVA 6-year CDs. The IRA CD pays 2.60%, but I chose the one-time step-up option and gave up 10 ba...
by Kevin M
Thu Mar 15, 2012 3:44 am
Forum: Investing - Help with Personal Investments
Topic: Comfortable but Confused
Replies: 12
Views: 1846

Re: Comfortable but Confused

However, I have been feeling like I should increase my bond allocation as well as lowerring my exposure in the company stock program. I agree. Regarding my company stock ... Should I just cash out and take the tax hit? This probably is the most rational thing to do. You are continuing to take plent...
by Kevin M
Thu Mar 15, 2012 3:07 am
Forum: Investing - Theory, News & General
Topic: Now in Wiki: Extended Market Index Fund
Replies: 42
Views: 6947

Re: Now in Wiki: Extended Market Index Fund

Here is a link to a 10-year chart comparing Vanguard Small-Cap, Extended Market and 500 Index. http://www.google.com/finance?chdnp=0&chdd=1&chds=1&chdv=1&chvs=Logarithmic&chdeh=0&chfdeh=0&chdet=1331797923841&chddm=960687&cmpto=MUTF:VEXMX;MUTF:VFINX&cmptdms=0;0&q=MUTF:NAESX& Does anyone see enough di...
by Kevin M
Wed Mar 14, 2012 7:23 pm
Forum: Investing - Help with Personal Investments
Topic: Help me help my mother go from Edward Jones to Vanguard
Replies: 20
Views: 3531

Re: Help me help my mother go from Edward Jones to Vanguard

Since you enjoy the stories, here's another one. A very good friend of mine retired and invested with an outfit that charged 1% of AUM. He knew people who said these guys were great. We'd get together now and then, and I'd just mention things to him like, "the research shows that in the long run you...
by Kevin M
Wed Mar 14, 2012 2:45 pm
Forum: Investing - Theory, News & General
Topic: Now in Wiki: Extended Market Index Fund
Replies: 42
Views: 6947

Re: Now in Wiki: Extended Market Index Fund

Nisi, I'm sure you've ready many if not most of the books I have, and know that the theory of tilting or slicing and dicing is based on Fama/French and related research. One of the 3 factors is SmB (Small minus Big). There is no MmB (Mid minus Big) factor, and as I recall, the return/risk increases ...
by Kevin M
Wed Mar 14, 2012 2:03 pm
Forum: Investing - Theory, News & General
Topic: Why I Prefer ETF's to Mutual Funds (in a Brokerage Account)
Replies: 76
Views: 5086

Re: Why I Prefer ETF's to Mutual Funds

First, ETFs are mutual funds. Then how do you distinguish between them; i.e., how do you refer to a mutual fund that is not an ETF? I think it's common practice to refer to mutual funds as opposed to exchange traded funds. Kevin Open-end mutual fund is the preferred nomenclature. :) Too wordy :wink...
by Kevin M
Wed Mar 14, 2012 1:43 pm
Forum: Investing - Help with Personal Investments
Topic: Income vs Growth
Replies: 9
Views: 1291

Re: Income vs Growth

The mortgage is at 4.2, and the costs of refi don't seem to justify doing so. At my age, in good health, it seems prudent to continue with the current situation and pay it off. You can get a 5/5 adjustable mortgage (rate fixed for 5 years, then adjusts every 5) at about 3% from PenFed (http://www.p...
by Kevin M
Wed Mar 14, 2012 1:12 pm
Forum: Investing - Help with Personal Investments
Topic: Retired and need advice on investment portfolio
Replies: 10
Views: 1236

Re: Retired and need advice on investment portfolio

Good point about the 3.5% annuity. He said he wanted to "diversify" some or all of it out of the annuity. When asked why stay in the 457, he said because he didn't have to take RMDs at 70 1/2, not to stay in the annuity. So now the question is: Why do you want to diversify out of the annuity? Kevin
by Kevin M
Wed Mar 14, 2012 4:48 am
Forum: Personal Finance (Not Investing)
Topic: Reporting Excess Roth Distribution
Replies: 3
Views: 444

Re: Reporting Excess Roth Distribution

Beth wrote:Thanks. I looked elsewhere for the answer. Regards, Beth
What was the answer?

Kevin
by Kevin M
Wed Mar 14, 2012 4:43 am
Forum: Investing - Help with Personal Investments
Topic: Retired and need advice on investment portfolio
Replies: 10
Views: 1236

Re: Retired and need advice on investment portfolio

Yes I am going to keep the Deferred compensation 457 money in there but but want to diversify some or all of it out the annuity. thanks Ed Why do you want to keep the 457? Is it not possible to roll it over to a Vanguard IRA, where you would have much better, lower-cost choices? I think a good mode...
by Kevin M
Wed Mar 14, 2012 4:22 am
Forum: Investing - Theory, News & General
Topic: Now in Wiki: Extended Market Index Fund
Replies: 42
Views: 6947

Re: Now in Wiki: Extended Market Index Fund

The write-up is OK as far as it goes, but I disagree that the only (or even the primary) purpose of such a fund is to supplement an S&P 500 fund to get the total stock market. It's also a FINE vehicle for folks who believe that small and mid-cap companies have potential to out-perform large compani...
by Kevin M
Wed Mar 14, 2012 4:16 am
Forum: Investing - Help with Personal Investments
Topic: Comfortable but Confused
Replies: 12
Views: 1846

Re: Comfortable but Confused

You clearly understand the risk of owning so much company stock, but the incentives and taxes are discouraging you from doing something about it. Just think about how much more you could lose than you are gaining by holding onto the stock. I'm pretty sure that if it were me, I'd start methodically s...
by Kevin M
Wed Mar 14, 2012 3:57 am
Forum: Investing - Theory, News & General
Topic: Why I Prefer ETF's to Mutual Funds (in a Brokerage Account)
Replies: 76
Views: 5086

Re: Why I Prefer ETF's to Mutual Funds (in a Brokerage Accou

Back to the OP, I think you could just as well have encountered an issue with ETFs and come to the opposite conclusion. Case in point ... A couple of months ago I was attempting to do some TLH with two ETFs. To try and avoid slippage, I entered a limit order to buy the second ETF a little below the ...
by Kevin M
Wed Mar 14, 2012 3:42 am
Forum: Investing - Theory, News & General
Topic: Why I Prefer ETF's to Mutual Funds (in a Brokerage Account)
Replies: 76
Views: 5086

Re: Why I Prefer ETF's to Mutual Funds

nisiprius wrote:First, ETFs are mutual funds.
Then how do you distinguish between them; i.e., how do you refer to a mutual fund that is not an ETF? I think it's common practice to refer to mutual funds as opposed to exchange traded funds.

Kevin
by Kevin M
Wed Mar 14, 2012 3:24 am
Forum: Investing - Theory, News & General
Topic: Now in Wiki: Extended Market Index Fund
Replies: 42
Views: 6947

Re: Now in Wiki: Extended Market Index Fund

Very nice! Captured the essential points, and I didn't see anything I disagree with.

Kevin
by Kevin M
Wed Mar 14, 2012 3:18 am
Forum: Investing - Help with Personal Investments
Topic: Is it time to buy financials?
Replies: 13
Views: 1124

Re: Is it time to buy financials?

Of course no one knows if it's time, but if you want to do so, you will minimize your risk by at least using a broad-based ETF like XLF. If you want to focus on banks, then KBE. For European financials, EUFN might float your boat. Warren Buffet has said that he thinks Wells Fargo is the single best ...
by Kevin M
Wed Mar 14, 2012 3:06 am
Forum: Investing - Help with Personal Investments
Topic: Where to invest $25,000 today
Replies: 3
Views: 1051

Re: Where to invest $25,000 today

What Brian said, but if this seems overwhelming, at least tell us a bit more about your situation. You could use the link Brian provided to see the kinds of things that help us help you, and just tell us as much as you can without feeling overwhelmed. Assuming this is in an IRA, then the Target Reti...
by Kevin M
Wed Mar 14, 2012 3:00 am
Forum: Investing - Theory, News & General
Topic: Another retroactive change of a CD withdrawal penalty
Replies: 16
Views: 2594

Re: Another retroactive change of a CD withdrawal penalty

I recently deposited a good chunk of my down payment in an ally 5 year CD (1.74%). I plan on using the money in 1-2 years... Starting to think maybe I should have gone with the No Penalty 11 month CD (.93%) for the flexibility. :? So far the CUs that have made these retroactive changes to the EWP r...
by Kevin M
Wed Mar 14, 2012 2:44 am
Forum: Personal Consumer Issues
Topic: Need a New Furnace... Suggestions?
Replies: 11
Views: 1492

Re: Need a New Furnace... Suggestions?

My furnace recently went out; about 26 years old. I just used Yelp, and started calling the 5-star rated furnace service companies until I found one that could come out that day. They were able to diagnose the problem, but didn't have the part to fix it, so I just told them to put in a new one. They...
by Kevin M
Wed Mar 14, 2012 2:36 am
Forum: Investing - Help with Personal Investments
Topic: Income vs Growth
Replies: 9
Views: 1291

Re: Income vs Growth

Welcome to the forum Fastone12. I think you would be better off focusing on total return rather than income or growth, and with a simpler, lower-cost portfolio that simply matches your risk tolerance. I think the Managed Payout funds are kind of a scam. You can manage your own payout by simply direc...
by Kevin M
Tue Mar 13, 2012 10:34 pm
Forum: Investing - Help with Personal Investments
Topic: Paying down loans vs. Saving for retirement
Replies: 45
Views: 5115

Re: Paying down loans vs. Saving for retirement

mt, thanks for providing some equations. I'll take a closer look later.

The thing is that I find it pretty easy adding in the complexities you mention with a spreadsheet. Not sure I'm good enough with math to do it starting with your equation.

Thanks,

Kevin
by Kevin M
Tue Mar 13, 2012 10:24 pm
Forum: Investing - Help with Personal Investments
Topic: Help me help my mother go from Edward Jones to Vanguard
Replies: 20
Views: 3531

Re: Help me help my mother go from Edward Jones to Vanguard

No, pensions and withdrawals from retirement accounts are not earned income, so no re-investing them into a Roth. You need real earned income to do that. I wouldn't want to work just to make Roth contributions at that age (heck, I don't even want to do it at my age of almost 60). What she could do ...
by Kevin M
Tue Mar 13, 2012 10:18 pm
Forum: Investing - Help with Personal Investments
Topic: Fidelity users here?
Replies: 22
Views: 3979

Re: Fidelity users here?

Thanks to all. Interestingly, nobody commented on my specific question about whether we can find account trade history... Guess all are so true to your strategies and there is no need to trade often and check in trade history? :happy The interface has recently changed, so in Portfolio View, selecti...
by Kevin M
Tue Mar 13, 2012 9:07 pm
Forum: Investing - Help with Personal Investments
Topic: For those who have living trusts...
Replies: 45
Views: 11361

Re: For those who have living trusts...

There are two problems related to changing trustees. The one is that the trust document itself is 20 or 30 pages long and there are supporting documents, such as an explicit listing of assets, the resignation of the original trustee, etc. that all need to be copied and sent off to the financial ins...
by Kevin M
Tue Mar 13, 2012 7:12 pm
Forum: Investing - Help with Personal Investments
Topic: For those who have living trusts...
Replies: 45
Views: 11361

Re: For those who have living trusts...

I'm almost at the end of taking my wife's estate through probate in Washington state. Sorry for your loss. Surprised you have to go through probate for a spouse's estate. Not necessary in California, which also is a community property state. As mentioned above, this is what I learned after a lawyer...
by Kevin M
Tue Mar 13, 2012 7:04 pm
Forum: Investing - Help with Personal Investments
Topic: For those who have living trusts...
Replies: 45
Views: 11361

Re: For those who have living trusts...

The hard part of the journey is still ahead of us - convincing financial institutions that, yes, the asset is inside the trust, Actually this part should be no problem if your FIL changed the ownership of each account to the trust, which is one of the most important parts of setting up a trust. The...